Earthstone Energy Intrinsic Value – EARTHSTONE ENERGY Reports Record Q2 Earnings for Fiscal Year 2023
August 7, 2023
☀️Earnings Overview
EARTHSTONE ENERGY ($NYSE:ESTE) reported their fiscal year 2023 second quarter earnings results on August 2 2023. Total revenue for the quarter, which ended June 30 2023, was USD 370.0 million, a 21.7% decrease compared to the prior year. Net income for the quarter dropped 59.9% year-over-year to USD 58.0 million.
Stock Price
On Wednesday, EARTHSTONE ENERGY announced their financials for the second quarter of the fiscal year 2023, and the news was big. This performance exceeded analyst expectations by a wide margin, representing an increase of 60%. As a result, the company experienced a significant jump in revenue, which led to the record profits.
This decrease could be attributed to the uncertainty surrounding the company’s future due to the volatile energy market. Nevertheless, investors remain optimistic that the company will continue to show strong earnings in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Earthstone Energy. More…
| Total Revenues | Net Income | Net Margin |
| 1.81k | 455.32 | 22.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Earthstone Energy. More…
| Operations | Investing | Financing |
| 1.16k | -1.13k | 20.43 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Earthstone Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.12k | 1.63k | 16.52 |
Key Ratios Snapshot
Some of the financial key ratios for Earthstone Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 118.8% | 283.5% | 48.8% |
| FCF Margin | ROE | ROA |
| -4.2% | 31.9% | 13.4% |
Analysis – Earthstone Energy Intrinsic Value
At GoodWhale, we have conducted a thorough analysis of the fundamentals of EARTHSTONE ENERGY. From our analysis, we have determined that the fair value of an EARTHSTONE ENERGY share is around $19.4. This figure was calculated using our proprietary Valuation Line. Currently, the stock is trading at $15.4, which is undervalued by 20.7%. More…
Peers
Earthstone Energy Inc is an oil and gas exploration and production company with a focus on the development of unconventional resources in the U.S. The company’s operations are primarily located in the Permian Basin of West Texas. Carbon Energy Corp, Northern Oil & Gas Inc, and Comstock Resources Inc are all competitors of Earthstone Energy Inc.
– Carbon Energy Corp ($OTCPK:CRBO)
Carbon Energy Corporation is an oil and gas exploration and production company with a focus on unconventional resources, such as tight gas, coal seam gas, and shale gas. The company has a market capitalization of $20.76 million and a return on equity of -36.04%. Carbon Energy is headquartered in Denver, Colorado, and operates in the United States, Australia, and China.
– Northern Oil & Gas Inc ($NYSE:NOG)
Northern Oil & Gas Inc is a publicly traded company with a market cap of 2.76B as of 2022. The company has a Return on Equity of 320.51%. Northern Oil & Gas Inc is engaged in the exploration and production of crude oil and natural gas. The company operates in the Williston Basin in North Dakota and Montana.
– Comstock Resources Inc ($NYSE:CRK)
Comstock Resources Inc is a publicly traded oil and gas company with a market cap of 4.3B as of 2022. The company has a strong balance sheet with a Return on Equity of 55.03%. Comstock is engaged in the exploration, development, and production of oil and gas properties, primarily in Texas and Louisiana. The company has a proven track record of success in finding and developing oil and gas reserves. Comstock is a high-quality operator with a strong technical team that is well-positioned to continue creating shareholder value.
Summary
EARTHSTONE ENERGY reported their earnings results for the second quarter of 2023 on August 2nd. Total revenue was down 21.7% from the previous year, while net income dropped by 59.9%. As a result, the stock price dropped significantly on the same day.
Investors should carefully consider these results before investing in EARTHSTONE ENERGY, as although earnings have decreased, there may still be potential for growth depending on the company’s future strategies. It is important to pay attention to any developments in the company’s strategy and overall performance to make better decisions for long-term success.
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